Seagate Technology Holdings plc announced that it has sold its Lyve Cloud business to Wasabi Technologies, receiving an equity stake in the cloud‑storage vendor. The terms of the transaction were not disclosed, but the deal marks a strategic divestiture that allows Seagate to concentrate on its core mass‑capacity hard‑drive operations while maintaining a financial interest in the growing cloud‑storage market.
The sale aligns with Seagate’s focus on high‑capacity storage, particularly its Heat‑Assisted Magnetic Recording (HAMR) technology. In fiscal Q1 2026, Seagate reported revenue of $2.63 billion, a 21% year‑over‑year increase, and a non‑GAAP gross margin of 40.1%. By divesting Lyve Cloud, Seagate removes direct competition in the cloud‑storage space and can allocate resources to its high‑margin hard‑drive business, which continues to see strong demand from data‑center operators and AI developers.
For Wasabi, acquiring Lyve Cloud expands its enterprise customer base and scale, reinforcing its position as a “pure‑play” cloud‑storage vendor. The company recently secured $70 million in funding at a $1.8 billion valuation, which it plans to use to grow its AI infrastructure and global footprint. The acquisition also strengthens Wasabi’s backup and recovery portfolio through existing integration partnerships with Veeam, Rubrik, and Commvault.
Employees of the former Lyve Cloud unit will be retained, and Wasabi has indicated that it will merge Lyve Cloud’s operations into the Wasabi brand over the long run, with no immediate rebranding or workforce reductions announced. The integration timeline remains unspecified, but the company has expressed a commitment to maintaining service continuity for existing customers.
David Friend, co‑founder and CEO of Wasabi, said the acquisition “strengthens our position as the world’s leading pure‑play cloud storage vendor” and that Seagate’s loyal enterprise customer base will be welcomed into Wasabi’s global network of data centers. Gianluca Romano, CFO of Seagate, noted that the transaction “aligns with Seagate’s strategic focus on its core mass‑capacity storage business while ensuring Lyve Cloud customers continue receiving exceptional support through Wasabi.”
The deal comes amid a broader shift in the cloud‑storage market, as enterprises seek alternatives to hyperscale providers that offer flat pricing and no egress fees. Wasabi’s model, combined with its recent AI‑focused expansion, positions it to capture demand from data‑intensive workloads, while Seagate’s continued investment in HAMR technology supports its long‑term growth in high‑capacity storage.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.